/biz/ - Business & Finance

>>810193
They disappear

>>810199
please tell me this is not true

>buy stocks from company A
>Company B buys company A
what happens to my stocks in company A ?

>>810193
You will get stock in each company with a value equivalent to the combined company.

Let's say you start with one share of company A at $100 and company A splits into companies B and C. You might get one share of company B worth $50 and one share of company C at $50. Now you have two shares.

>>810199

Read about ConocoPhillips spinning into Conoco and Phillips66. Might help.

>>810217
Usually you will get paid out in cash, if the deal is in cash. Sometimes a company will buyout another in a mixed deal, paying any combination of cash, stock or debt.

>>810217
Let's say Heinz buys Kraft. All Kraft shareholders receive $XX in cash and XX shares of the new combined company.

Can someone explain dividend rate and how it related to APY?

also is pic related good or shit

>>810202
Yeah it's true
O
What you bought no longer exists

>>810289
but this guy says otherwise: >>810225

>>810273
Since Apr = apy you can assume it compounds annually

>>810273
And it's absolute shit, doesn't even make up for inflation

Will a B rated corporate bond always have a higher YTM than a US treasury bond assuming they have the same time until maturity?

bump for the other idiots

>>810320
Yes... what are you copying questions from Chapter 1 of your econ book?

>>810320
Practically always yes.

Think of it this way: Why would a creditor lend money to a riskier company if they could get the same return from the US government?

>>810320
Yes

WHICH OF THESE TWO IS TRUE ????

>>810199
or
>>810225

>>810881
They vanish in to thin air, why else are they giving you dividends? There needs to be some risk?

>>810881

Are you fucking retarded or what?

Yes the stocks disappear and the companies steal all your money.

>>810887
It's like some people don't even think about it. I don't understand this process of thinking, where else would they go?

Mark Zuckerberg's net worth is around $35B. Could he actually spend $35B? It's all tied up in facebook stocks, but it's not like he could sell all his stocks at once without devaluing his own shares.

So i have a top notch business idea.

How do i get the ball rolling?

I can probably do the management stuff, but i need a few staff and web developer. Got enough cash to start it up, but not willing to risk anything until i got a few people on board... Any site i can go to so that i can get some interest in the project?

>>810945
>not willing to risk
>expect strangers to risk for you

>>810949

Its called an investment isn't it?

You put some money in, you (might) get some money out?

Its very common actually.

Anyway, i have enough cash to make it start, i just need some people that can help in the start up.

>>810989
Well, I might be willing to help, but that depends heavily on what this idea of yours is and what you need.

Where do you keep your 6-month emergency fund? Feels like a waste to just keep it in a savings account with like 1% interest.

Is there any point to buying bonds other than to dampen the volatility of your portfolio (which doesn't matter to me, I believe I can weather it)?
Is there a point to buying commodities to make money without gambling or should I stick with index funds?
Is there a point to buying REITs, which have high yields but not much capital gains from what I gather?
My asset allocation is 100% index fund stocks so I'm wondering if I should try and diversify out.

>>810193
Is Putin alive?

>>811144
Buying REIT's is like buying investment property. The average rental home has a return of 7-8% per year.

With most REIT trusts you can get the same return with 0% of the work.

>>810945
the only place i've ever seen for joint ventures is black hat seo forums, but you dont want any of those kids helping you, they dont know anything

>>811151
no he's dead, he's locked in my basement (haha)

>have 650 credit score
>$5000 total credit between 3 cards
>using around 10% of my available credit
>no late or missed payments
>no derogatory remarks
>mom has credit card with $10000 limit
>let me use it several years ago when I was in college
>she keeps a balance around $9000
>this shows up on my credit report
>makes my credit utilization 63% instead of 10%
>reports say this high utilization is the reason my credit score is so low

What do? She said she removed my name from her card, but it still shows up. I either need to get a credit limit high enough that it's not impacted by her shit, or I need her card removed from my record completely.

>>811144
>Where do you keep your 6-month emergency fund? Feels like a waste to just keep it in a savings account with like 1% interest.
Yes, you keep it in a savings or money market account. It sucks that rates are what they are, but that's the price of having a fully liquid, fully safe emergency fund capable of doing what its supposed to do if needed.

If your fund is larger than 6 months you could consider a cd ladder for a portion of your fund, although I'm not sure its worthwhile in the current interest rate environment.

Lastly, a reminder that interest rates haven't always been this low and won't stay this low forever. Never abandon smart personal finance strategies based on short-term market conditions.

>>811166
This man knows his shit.

Is it free to start a td ameritrade account

>>811576
Not Ameritrade but the TD bank in Canada let me hold a standard brokerage account with them for free. You can usually find info on their website. Look for their fee schedule and see if they mention any activity or maintenance fees and ways to get them waived if they do. I get my fees waived as I have a registered account with them as well which I opened for free.

>>811635
This page says no fees and no minimum to open, but I still just don't know lol

https://www.tdameritrade.com/account-types/faqs-opening.page

>>811000

Well, if you happened to live in Melbourne that would be really what i need.

>>810193
If you haven't found your answer yet, there are multiple ways that this could play out.
1. You could literally not get stock in either of those companies. And your stock in original company would devalue extremely (this is not likely at all)
2. You get equal share in both new companies(this doesn't necessarily have to be the same amount you originally invested, you could gain or lose in this situation)
3. Your shares get liquidated by the company splitting. (This would be full value of your stocks at official liquidation date)

Hope that helps

>>810217
You will get cash for each share you own or stocks from company that bought the company you own

Look at opko brli deal right now for example of stock transfer.

>>811794
>>811797
thanks!

So Canada is going into a recession. How do I make the best of it? Buy some VCN as it hits rock bottom?

i have freaking 500 US$ and i dont know where to invest them. it's too little to make good investments and too much to spend it in hookers. i know i'm losing money by having them in my bank account

>>812436
It's smart to have ~3 months spending in cash as a back up for most people. I would recommend just holding on to it.

Anyone have experience in trading options? I've watched a bunch of videos on youtube from Options Alpha and he makes it seem like a good way to earn some extra cash.

>>812689
>options
Options can be extremely risky (i.e., unlimited loss potential), and are particularly ill-suited for new investors and investors without adequate capital.

>>812700
>can be
Can't you also play it safer and cap most losses?

>>812727
Yes there are some safer option strategies, but they are proportionally less rewarding as well.

The real problem with options is that they require you to correctly guess the short-term future direction of the stock. And that future direction can be any of three (not two) alternatives: price rises, price falls, price stays flat. If you own a stock or an index, flat price results are undesirable, but won't erode your capital (and you get dividends). But with options, flat price results will lead to losses if you guessed wrong because of the contract premium and commissions (and no dividends).

So 2/3 of all options strategies with respect to a stock are going to lose you money, and only 1/3 are going to yield profits.

Therefore even putting aside the fact that its impossible to make reliable, consistent short-term predictions about stock prices, the odds are stacked against you.

(I will concede that there are some very specific options strategies for legitimate risk management, income generation, etc. (.e.g., selling covered calls), but frankly I don't think a long-term investor with a properly allocated and diverse portfolio needs to rely on such tactics. There are more conventional ways to achieve the same results, such as rebalancing into other asset classes.)

>>812760
Hmm you make good points. Thanks for the thorough response!

OK, I'll bite.

I want to get started in investing, I've been doing on and off research for about a month. I am 32, I have a salary of 62k and I have 50k in a 401(a) retirement account with 100% in a guaranteed 5% stable value fund. I want to beef up my retirement savings and make a little extra right now.

My plan so far is to:

1) Diversifty 401(a) to more lucrative investments

2) Open Roth IRA account and contribute as I am able to, hopefully at least 1k/year

3) Get into penny stocks with a modest investment (1k) to try my hand at trading.

Is this a wide strategy? Should I avoid any specific funds or bonds (for example I have heard the advice to steer clear of municipal bonds right now). Also, is it possible to get into trading penny stocks conservatively - that is not check like charts all day every day, and check maybe once or twice a week.

I got a retail store card as my first CC. Am I correct in understanding that the less I put on the card, the lower % of credit I'm using and therefore the more my score will go up? Wouldn't it make more sense for me to spend more and consistently pay it off?

What's the difference between stocks and options? I Googled it but all those explanations confused me.

>>812852
1) and 2) are fine. Your long-term investments, such as your 401k and your Roth should be invested in something with a expected rate of return higher than 5%. Even an 80/20 fund would average something like 8% in the long run.

3) is just pants-on-head retarded. Unless you enjoy gambling, and think its wise to devote $1k for the enjoyment factor. Personally I think you get more entertainment value at a casino, but you're free to waste your excess cash however you want.

But if you think you're going to make any money in penny stocks, you're delusional.

>>812930
>What's the difference between stocks and options?
Stock shares are fractional ownership interests in a company. Options are standardized contracts to buy or sell shares at a specified price on a specified date in the future.

>>812984
So like if a stock is $1 you can buy an option to purchase the stock in the future for $1 even if the stock price increases?

>>813166
>So like if a stock is $1 you can buy an option to purchase the stock in the future for $1 even if the stock price increases?
Basically, yes.

But the price of that option might be something like $0.20 (as an example). In this case, if the stock price never rises past $1.20 during the period of the option (or if the stock price falls), then you will lose money. If the stock price rises past $1.20, then you will make money (either by exercising the option and purchasing at $1 or by selling the option, which will now be worth more than the $0.20 you paid for it).

>Note that exchange-traded option contracts operate in standard blocks of 100 shares. You can't go onto the CBOE and buy an option to purchase (i.e., a call option) for one share.

>>813180
Except mini-options.

I've invented a product but it's only viable in foreign markets and I live in the US.
How do I go about advertising/showing my product to the foreign audience if I don't have the language skills to do so myself? I'm looking to stay away from licensing and I'd prefer to manufacture and distribute myself.

>>813183
Fair point. I've only traded standard options, and stopped long ago. I'd forgotten than minis even existed.

>>813180
Okay I think I have a general idea of how those work now. Thanks!

not sure if this is the right thread or board for this but whatever

I've been offered a one day training course and guaranteed (provided I pass an exam) 30 day placement as a junior stockbroker at an investment/trading company in London

They want £250 for the training day, which is "guaranteed" to get me a internship, which provided I do well, will in theory give me a good chance of a full time junior stockbroker position. But for some reason I remain sceptical.

Has anyone ever had any experience with anything like this before ?

>>810193

What if I only buy stocks with dividends? How will this affect my taxes?

How do I get started into freelance web development?

I don't want to leave my room and I don't want to have to meet people in real life.

>>813511
shill online and promote yourself.

>>813505
its a scam retard, pull your head out of your ass and think for a moment.

How do I research stocks? Just look at charts and trend lines?

Also how do you even find stock to research?

>>813505
tell them to deduct the 250 from your first paycheck.

alright lets try this retard question

How do I make some easy extra buck online? I know flipping shit from CL is a thing but CL isn't big where I'm from so that's out
Already answering surveys for spare change every now and then but that's pretty slow

If the value of a stock is measured by the present value of all future dividends, then wouldn't Yahoo, Google, and Facebook be worthless since they seemingly have no plans whatsoever for dividends?

>>813631
Learn how to fix broken iPhone screens and take advantage of women

>>813659
>If the value of a stock is measured by the present value of all future dividends,
False assumption. A share is a fractional ownership interest in the entire company, not just future dividends. You have an ownership interest in the land, the machinery, the equipment, the inventory, the intellectual property, etc. as well as the right to potential future distributions.

Valuing future cash flow is a common way to value a company in some situations, but is not a particularly useful nor complete method in the case of a mature publicly-traded stock.

>>813703
Is it possible for a company to run out of stock to sell?

I have the option to buy counterfeit 50€ bills for 5€ each
How do I turn them into real money?
Thinking of paying a delivery service with it or something. Late in the evening in a hallway he wont see much.

>>813720
>Is it possible for a company to run out of stock to sell?
Yes, and no. Every company will authorize and issue a specific number of shares, and those are the only shares that trade at any given time.

In theory, a company can always authorize and issue new shares at any time. Companies commonly issue new shares for employee bonuses and incentive programs, for example.

Issuing large amounts of new shares without raising new capital dilutes existing shareholders, and would therefore harm them. This would normally be a violation of the board's fiduciary duties.

>Be me
>Be 17
>Not an amerifag, neither a eurofag
>Have 1000 USD that i want to invest
>Going to dental school
wat to do /biz/? i really want to start making good shekels.

Few months lurker here
How relevant is the information normally talked here for someone outside of the US? more specifically a 3rd world country

Whats a good broker for day/swing trading as a beginner. I just turned 23 yesterday and have been pooling money to start trading because I have fun trading and watching/exploiting market changes in EVE Online. I know trading stocks isn't a game and people, I, could lose real money but I budgeted money specifically for this activity. I want to clarify that I'm not looking for something like Ameritrade or another investing broker where the point is specifically to invest to build for retirement, or college, or putting money into a fund. I'm looking to handle trades myself on a 2-3 day swing cycle looking to flip stocks actively for a fun profit or loss.

I've found some that have low margins and low trade costs but they all require like $10,000 accounts. I have like $1,200 right now. I was also thinking about flipping stuff on ebay but stocks feel more comfy.

>>814138
Td ameritrade

>>814139
Really? do I just want a standard account?

Like all the options seemed towards investing.

>>814141
I order to day trade you need a margin account of 10k+ generally, m8

Can someone help me understand options trading a little better? I read the investopedia guide on them and I thought I understood, then tried to look at a few stock options and got confused again. The strike price is what confuses me.

I was looking at NBG options and, if I even remotely have an idea of what I'm talking about, it says July 15 Puts are $0.11/option with a strike price of 15. Since NBG stock price is $1.21 though does this mean if I bought a call on this stock that it'd have to jump above $15 to make any money on it?

Also what do the (6) and 100 mean in July 15 (6) 100?

>>811781
Most web development can be handled through correspondence.

>>810193

Question:

Have a possibly good idea for a business/app that could make a bit of money on cruise control (without much manual labor).

Though having just thought of the idea, there's a few problems i have with it, though its mainly to do with finding someone to help me start it and someone to write the programming for such an app/website as she system is potentially quite complex but there's other things like it out there already that it can be based off. My main problem is although im actually an IT student i dont have the ability to create something that complex.

Also i just need a few people to bounce ideas off and see if its worth going any further, because as with anything you might think its a great idea but others think its absolute crap.

So the main question is, where do i go to find such people that would be interested in a project like this?

Was thinking that there's an Entrepreneurs society at my university, but its mainly a kind of 'motivational' society that listens to speeches and goes to presentations for businessmen, they have some discussion groups, but i don't think i'd get a whole lot of traction, though i don't know where else to start...

>>814540
>I was looking at NBG options and, if I even remotely have an idea of what I'm talking about, it says July 15 Puts are $0.11/option with a strike price of 15. Since NBG stock price is $1.21 though does this mean if I bought a call on this stock that it'd have to jump above $15 to make any money on it?
No, it means you won't make a profit until the price of the stock jumps to $15.11 plus your buy/sell commissions.

Stay away from options. You don't know enough yet, and by the time you do, you'll have enough capital that you don't need them.

>>814015
respond please

>>814742
I'm not gonna buy them yet, I'm just trying to learn about then

/biz/, my mom owns a place is nyc and is getting a fuck ton of cash from the sale of air rights (100k+), I'm trying to figure out what kind of taxes she's gonna a have to pay on this. Anyone have any clue? I don't even know what to search for. Capital gains tax?

I'm currently working in a company and told my boss that I quit to study my Master degree soon. Actually that was my plan but recently I got a very good job offer and there is a interview soon on a working day. How should I handle that? Should I get a day off (for "no reason") or better tell my boss?

Is it possible to make a living just by day trading/trading stocks?

Lets say I have $10k to invest and hold a shit tier job. Can I work myself up by just buying and selling stocks for a year or two to more than 15k?

How do I into 1%

make manymonies
hue

I just got my first job (inb4 under 18, I'm 19 and yes i know I started late)

I have absolutely no idea how to get involved in the stock market or really that much of anything to do with my money. I have no parental figures to teach me such either.

I recently got a credit card to build credit, I know that I need to gain credit so buy stuff with the credit card but make sure to pay it back every month.

What else can I do with my pay check to ensure that I have a bright financial future?

How do you make money trading bonds

>>813190
look up someone in /int

>>815966
Reading through The Intelligent Investor now.

Also, can anyone help me understand something?
Our country is $18 Trillion in debt. How does the dollar still have value? Is gold and silver a "safer" investment before a crash (hypothetically speaking). I intend to buy stock once a crash happens.

>>816178

Only if you sit on it.

>>816221
I just don't understand how if, for instance, you purchase $10,000 bonds in a company, which essentially means you're lending them $10k if I understand bonds correctly, then how do you get back more than $10k back? Does it rely on inflation?

>>816225
ffsm8
example scenario:

>Buy 1 bond worth $1000
>10 year maturity
>coupon payment of 5% interest bi-annualy
>thats $50 every 6 months or $100 per year folks.
>this happens 10 times hence 10 year maturity
>$100 * 10 = $1000
>bond contract traded back for your intial $1000
>$1000 + $1000 = $2000

but wait theres more.png:

>during your contract
>decide fuckthisshit and sell bond
>you reap all the coupons currently
>trade bond contract for $1000 + a little more because its now shorter in maturity
>$1000 + some extra monis

wow much hard

Whats a bunch of good online business forums for like feedback on startups, finding collaborators, sharing ideas and such?

Have had a quick look, most seem small or very quiet or a scam for a business book or something... Honestly, biz is the busiest site I have found yet which is pretty bad when you think about it.

I have a few ideas I want to discuss, but there seems nowhere to do it.

>>816256
Well that's ll cool j